Car sales in Europe dip slightly in April, Tesla's 49% drop tempers EV gains

By Jesus Calero May 27 (Reuters) - Tesla's TSLA.O sales in Europe fell 49% in April from a year earlier, even as battery-electric sales rose by 27.8%, as the U.S. EV maker's upgrade of its Model Y shows little sign of improving the brand's tarnished image in the region. Overall car sales in the region remained roughly consistent with last year, falling just 0.3%, with the strongest sales growth coming from electric and plug-in hybrid cars, data by the European Automobile Manufacturers Association (ACEA) showed.WHY IT'S IMPORTANTTesla's sales in Europe continue to drop, reflecting a shift away from the brand as Chinese competition strengthens and some protest against Elon Musk's political views.European carmakers strive to cut domestic costs and tackle competition amid U.S. tariffs on auto imports and a slowing global economy, with uncertainty overshadowing the industry's outlook despite eased U.S.-China trade tensions.BY THE NUMBERSApril sales in the European Union, Britain and the European Free Trade Association (EFTA) fell to 1.07 million cars, following a 2.8% growth a month before, the ACEA data showed.Registrations at Chinese state-owned automaker SAIC Motor 600104.SS and Mitsubishi 7211.T grew by 24.5% and 22.1% respectively, while they fell by 24.5% at Mazda MAZD.NS.Tesla's TSLA.O sales fell for a fourth month in a row, down 49% year-on-year, and its share of the total market nearly halved to 0.7% from 1.3% a year ago.In just the EU - not including Britain and the EFTA - total car sales fell 1.2% year-on-year, declining for a fourth consecutive month, as the registrations of battery electric (BEV), plug-in hybrid (PHEV) and hybrid electric (HEV) cars grew by 26.4%, 7.8% and 20.8% respectively.Electrified vehicles - either BEV, HEV or PHEV - sold in the bloc accounted for 59.2% of passenger car registrations in April, up from 47.7% in the previous year.Among the largest EU markets, total car sales in Spain and Italy increased by 7.1% and 2.7% respectively, while in France and Germany they dropped by 5.6% and 0.2%.In Britain, registrations were down 10.4%.CONTEXTGrowing interest in Europe's EV market, driven by emission targets and cheaper models, contrasts with global policies encouraging EVs amid trade tensions, slowing markets, and potential plant closures and job losses.